Collin Verron: Hey. Good morning. Thank you for taking my questions. So I appreciate the high-level commentary on volumes of product category, but can you quantify the price versus volume in the quarter? And just give us a little bit of guardrails on how you’re thinking about the magnitude and cadence of declines in the back half of the year just to get to that down sales in the fourth quarter that you guided to?
Scott Culbreth: Yeah, Collin, I think we’ve probably hit this a couple of quarters now, but we’re not breaking out the price versus quantity beyond what we’ve already disclosed.
Collin Verron: Okay. And then, I guess, just in terms of the capacity addition, can you just walk us through the rationale here for the additional capacity just given the weakened — weakening macro backdrop? And just any color on the timing of the capacity coming online would be helpful.
Scott Culbreth: Yeah. So first, let me hit the timing when the capacity comes online. So what we’re targeting is the March-April 2024 timeframe. So I think the fourth quarter of that fiscal year into the first quarter of fiscal year ’25 is when we’ll really be able to utilize that capacity to drive incremental sales growth. To the first part of your question, why do it and the why now? My first response would be that we’re in this for the long game, not the short game. So short-term disruptions, macroeconomic uncertainty going into ’23, that’s a factor, but that doesn’t affect our five year strategy and what we’re looking to accomplish and achieve between now and fiscal year 28. So we believe we need this capacity to be able to meet the overall demand needs and sales growth goals that we’ve got as an organization.
We’re presenting our strategic plan to our Board next week. And then we plan to release within the quarter and updated Investor Relations deck, which will give you some perspective on what those five year goals would be from a revenue and profitability standpoint. But this project will be critical to allow us to achieve that.
Collin Verron: All right. That’s really helpful color. And then just last one. You called out lumber prices — hardwood lumber prices coming down certain species. I guess any way you could help us understand the magnitude of those declines? And then is that enough to offset the cost inflation that you’re seeing in other areas or are you still expecting to see pressure from a cost perspective going forward? Thank you.
Scott Culbreth: So the decline in lumber is not significant enough to warrant a pricing reset with any of our accounts. So we still are, at a point in time, where we’re balanced. So we’re not seeing enough rollback to go engage in any of the channels with any kind of price reduction. So although hardwood lumbers come down, we’re continuing to see increases again in many of the other categories such as plywood and particleboard.
Collin Verron: Great. Thank you for all the color.
Operator: And the next question will be from Steven Ramsey from Thompson Research Group. Please go ahead.
Steven Ramsey: Good morning. I wanted to hear a little bit more on the share gain opportunities you mentioned for 2023, maybe talk about by channel and market and how it works to gain share in periods of slower demand?
Scott Culbreth: Yeah. So Steve, that specifically was tied to the new construction as we’re thinking about it. So as we see a slowdown there, is there opportunity to go grab share? I can tell you, over the last year, 1.5 years, we’ve had accounts come to us looking for incremental volume capacity, we were tight and didn’t have it. So we were having to say no. So now we’re able to release our sales teams to reengage in those conversations and explore opportunities to either convert existing communities or establish new communities with our product.
